Sir Keir Starmer has shelved his Chagos Islands deal amid worsening relations with Donald Trump after the US failed to formally confirm its approval.
Trump had urged Starmer to scrap the deal despite earlier expressing support for the treaty. In January the president called the plan an "act of total weakness".
UK government officials have said they are not entirely abandoning the agreement - which would hand sovereignty of the British territory to Mauritius - but have run out of time to pass legislation before Parliament is dissolved in the coming weeks.
However, a new Chagos bill is not expected to feature in the King's Speech in mid-May.
It is understood the UK has still not received a formal exchange of letters from the US - a legal necessity required for the treaty to be enacted.
